It moved downwards Wall Street in the current session as investors continue to reduce positions in technology stocks and cash in on earnings. However, the decline in smaller companies and financial stocks as signs of a weak US economy overshadowed optimism for a rate cut.
THE Dow Jones fell 533.06 points, or 1.3%, to 40,665.02, snapping a six-session rally. THE S&P 500 fell by 0.78%, closing at 5,544.59 units, while the o Nasdaq fell 0.70% to end at 17,871.22 points.
Liquidations continue today among the top names in the tech space, a trend that has begun in recent days as growing hopes of a rate cut by the Fed at its September meeting shift. of investor interest towards small caps and more cyclical stocks, which are more. favored by low borrowing costs.
That shift sent the high-tech index down 2.8% in Wednesday’s session, its worst daily performance since December 2022. Wednesday marked the first session since 2001 in which the Nasdaq lost more than up 2.5%, while the Dow hit a new all-time high. .
However, in the current session liquidations were widespread in all but one of the 11 sectors of the S&P 500, while nine of the ten members of the Dow Jones moved lower. The Russell 2000 index for small stocks also fell nearly 2%.
The fact is mainly attributed to data on applications for unemployment benefits in the US, which last week marked the largest increase since the beginning of May.
However, despite today’s decline, the Russell 2000 has rallied 7% over the past five sessions, while the Nasdaq has fallen more than 4% over the same period.
For the year to date, the S&P 500 is down about 1.2%, while the Nasdaq is down 3%.